Gulf Bank, a leading bank in Kuwait, has recorded a net profit of KD36.1 million ($119.3 million) in the first nine months of 2017, an increase of 10 per cent over the same period in 2016.

The bank was able to generate net interest income of KD97.2 million and operating profit of KD89.7 million during the first nine months of 2017, recording double digit growth of 10 per cent and 11 per cent, respectively, over the prior year period.  Meanwhile, expenses remained flat for the first nine months compared to the same period in 2016.

Over the first nine months of 2017, total assets of the bank grew by 3.5 per cent while Loans and Advances to customers increased by 3.3 per cent. Total equity reported at the end of September 2017 was KD591.2 million and general provisions stood at KD225 million, representing 38 per cent of total equity.

Omar Kutayba Alghanim, Gulf Bank chairman, said: “We are pleased with our bank’s solid performance in the first nine months of 2017. This has reflected positively on earnings per share as it grew by 10 per cent to 12 fils per share for the first nine months of 2017 compared to the previous year.”

Credit ratings

Gulf Bank continues to enjoy favourable ratings from the top international credit rating agencies. In October, Fitch Ratings upgraded Gulf Bank’s Viability Rating to 'bb+' from 'bb' and affirmed the bank’s Long-Term Issuer Default Rating at 'A+' with a Stable Outlook.

In addition, S&P Global Ratings revised their outlook on the bank to “Positive” from “Stable” and affirmed its issuer credit rating at “A-“in June 2017. Similarly, Moody’s Investors Service affirmed the bank’s “A3” long-term deposits rating and “Stable” outlook in May 2017. Furthermore, Capital Intelligence affirmed the bank’s Financial Strength Rating at “BBB+” and the subordinated bond rating at “BBB” both with “Stable” outlooks in May 2017.

Gulf Bank continues to be strongly recognized both internationally and locally. During Q3 2017, the bank received the 'Best Retail Bank in Kuwait’ award and ‘Best Mobile Banking Application in Kuwait’, both by International Finance Magazine.

In regard to the FTSE classification of Boursa Kuwait as a secondary emerging market, Al Ghanim said: “I would like to congratulate Kuwait on this achievement. It will have a positive impact on Boursa Kuwait attractiveness to investors targeting emerging markets. This will ultimately enhance the liquidity and the flow of investment funds to the Kuwaiti market.”

“Our congratulations go to everyone who contributed to this achievement including the Capital Market Authority, Boursa Kuwait and Kuwait Clearing Company,” Al Ghanim added. – TradeArabia News Service